1. Product Mix Chapter 7 Overview

2. SegmentationNot Proliferation

3. One Size Doesn’t Fit Anybody Very Well • Consumers buy benefits, and products that BEST address their SPECIFIC need will get purchased. • Segmentation Analysis can help you determine where you need products to address consumer needs.

4. What It’s Not • It’s not just line-extensions….(Dove Soap and Dove Shampoo). • It’s usually distinct, stand alone brands that address specific consumer needs.

5. Cleans, Whitens and Sanitizes Dreft Tide w/ Bleach Everyday Dirt Ground in dirt & Stains Tide All Cheer Cleans & Keeps Colors Vibrant

6. Generic Quality High Priced Low Priced Premium Quality

7. Product Mix Covers All the IMPORTANT Bases • It’s all about SALES. If the number of consumers that want a product to fulfill that need is significant, offer it. • Don’t be a flea on an elephant’s behind. (I.e. toothpaste for those with braces).

8. Fighter Brands • Protect the premium brands. • Are hard to detect as a consumer. • Are almost always found as “in-store specials”. • Work particularly well in “commodity” categories.

9. The Phone Wars • History • My crystal ball from 1997…… MCI / Worldcom: Bankrupt Sprint: now mostly a wireless phone company. AT&T: Still slugging away and losing money.

10. Linked Benefits • Great taste & low calories. • Clean, white teeth, fresh breath, tartar control, fights gum disease. • Clean, comfortable shave.

11. NEVER try to segment and unlink LINKED BENEFITS

12. Usage Occasion • Can be an effective way of segmenting and creating a reason to own multiple versions of your product: • Chapstick • Regular • Healing w/ Vitamin E • Sunblock Protection • Flavored • Winter Protection